Different definitions of Debt in EV and FCFs models

CFA Level II
#1

Guys, while checking 2012 mock I made 2 erros in a thing I was quite sure I got a good hande on, namely:

  1. Calculating value of the firm using FCFF and then subtracting debt to get equity value. Here answers said that debt = long-term debt + notes payables + account payables. (I don’t like the last one)

  2. Calculating EV. Here, accoring to answers, debt = long-term debt only. (why don’t include short-term debt, which is essentially current portion on long-term debt?)

For reference, it was afternoon session set #6.

Can anyone please explain me those differences in definition of debt in different formulas??

#2

This is something I have always found confusing as well.

#3

I’ve also run through CFA text and found no clear cut answer. No BB, no EOC.

Does anyone know what is going on here?

#4

Maybe now someone can help??